A business loan is a loan specifically intended for business purposes.[1] As with all loans, it involves the creation of a debt, which will be repaid with added interest. There are a number of different types of business loans, including bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances and cash flow loans

A bank loan may be obtained from a bank and may be either secured or unsecured. For secured loans, banks will require collateral, which may be lost if repayments are not made. The bank will probably wish to see the business’s accounts, balance sheet and business plan, as well as studying the principals' credit histories. Many smaller businesses are now however turning towards Alternative Finance Providers, especially in the case of smaller firms.

Methods of business loan assessment, monitoring, risk management, and pricing affect the growth and performance of banks and other lenders. They also affect access to finance by would-be borrowers. The types of business financial information on which lenders base their decisions have changed significantly over the years – along with the management of business lending in general.

Martin Loker

Methods of business loan assessment, monitoring, risk management, and pricing affect the growth and performance of banks and other lenders. They also affect access to finance by would-be borrowers. The types of business financial information on which lenders base their decisions have changed significantly over the years – along with the management of business lending in general.

The US Small Business Administration (SBA) does not make loans; instead it guarantees loans made by individual lenders. The main SBA loan programs are SBA 7(a) which includes both a standard and express option; Microloans (up to ₹50,000); 504 Loans which provide financing for fixed assets such as real estate or equipment; and Disaster loans. In FY 2016, total 7(a) volume was ₹11,967,861,900 and total 504 loan volume was ₹2,517,433,000.